The European Union plans to allow the United Kingdom to participate in a massive €90 billion credit program for Ukraine. This strategic initiative aims to help Kyiv purchase up to €60 billion worth of essential weaponry over the coming year. The remaining funds will support Ukraine’s economic stability and critical infrastructure as the country continues to defend itself.
The Times reported that the EU is open to British involvement as part of a broader “reset” of bilateral relations.
Currently, European Union procurement rules restrict British defense firms from accessing major contracts. These companies can bid only when EU-based manufacturers are unable to meet specific military requirements. Consequently, British ministers are actively negotiating for wider access. They want to ensure their companies compete on a level playing field during defense tenders for Ukraine.
Details of the Agreement and Funding Terms
European Commissioner Maroš Šefčovič confirmed that Brussels welcomes London’s participation in this financial mechanism. He emphasized that such cooperation benefits both parties and strengthens collective European security during these challenging times. EU officials stated they have no objections to British defense companies participating in procurement tenders funded by this loan. This move signals a significant shift in post-Brexit defense cooperation between the United Kingdom and the European Union.
The UK’s financial contribution will likely reach approximately £390 million (€455 million). Although officials are still finalizing the total amount, the terms of the interest payment are already under discussion. Under the current proposal, Britain would pay its fair share of the interest, totaling roughly €3 billion annually. These funds will directly finance the production of heavy weaponry, drones, and ammunition required by the Ukrainian military. Such steady funding ensures that Ukraine remains well-equipped to resist ongoing aggression during the full-scale invasion.
Previously, The Ukrainian Review reported that the EU urges G7 to speed up Ukraine loan payments.
